GE Will Need More Cost Cuts to Hit 2018 EPS Goal, CEO Says
May 24 2017 - 1:42PM
Dow Jones News
By Thomas Gryta
Jeff Immelt, General Electric Co.'s chief executive, is standing
by a closely watched goal of generating $2 a share in earnings in
2018, but he signaled Wednesday that struggling resources markets
pose a risk to reaching the target.
Wall Street has speculated on whether the industrial bellwether
would walk back from the 2018 earnings target it set in 2015, and
many are doubtful the company will make it. Analysts currently
expect $1.89 a share, according to Thomson Reuters.
In a presentation at an investor conference, Mr. Immelt
reassured investors that the company's cash position remains
strong, its dividend is a priority and it remains committed to 2018
goals.
He shared a PowerPoint slide that showed the $2 EPS target but
noted it would be at the high end of expectations, given current
market conditions. He said reaching the goal would likely require
additional cost savings.
"If we wanted to take it off the page, we would have taken it
off the page," Mr. Immelt told the audience. "And we didn't want
to."
Investors are reading the presentation as negative, shares
dropped nearly 2% to $27.73 in midday trading. The shares, which
have attracted activist investor Trian Fund Management, have fallen
12% so far this year.
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
May 24, 2017 13:27 ET (17:27 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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